17 Mar 2014

Dorchester buys Oxford Insurance

2:01 pm on 17 March 2014

Dorchester Pacific will more than double its finance business by buying Oxford Finance for up to $12.3 million

The final price, which could be as low as $11.3 million, will depend on Oxford's earnings in the year ending March 2015.

Dorchester says it expects Oxford to contribute $3 million in operating earnings in that year.

As a result, Dorchester has lifted its pre-tax profit forecast for the year ending March 2015 to between $10 million and $11 million and to between $14 million and $15 million for the following year.

Dorchester's loan book totals more than $50 million and will take Dorchester's total loans to near $90 million.

The company, which also owns nearly 20 percent of car auction company Turners Auctions expects to report a trading profit of about $6 million for the 12 months ending this month.